Lufthansa reports record profits!

There was a Bloomberg article today about Lufthansa’s profits for 2007.

Feb. 26 (Bloomberg) — Deutsche Lufthansa AG, Europe’s second-biggest airline, said 2007 profit doubled after the carrier added U.S. and Asian routes and offered cheaper tickets.

Lufthansa rose the most in more than four years in German trading after the carrier said net income jumped to 1.66 billion euros ($2.46 billion) from 803 million euros a year earlier. Earnings beat the 1.56 billion-euro average analyst estimate. The Cologne, Germany-based airline said it plans to raise the 2007 dividend by 79 percent to 1.25 euros a share.

New destinations such as Karachi, Pakistan, and Orlando, Florida, helped Lufthansa take on Paris-based Air France-KLM Group, Europe’s biggest airline. The German carrier sells short- and medium-haul flights for as little as 99 euros to confront discount rivals such as Air Berlin Plc. Profit was helped by the takeover of Swiss International Air Lines Ltd. and the sale of Lufthansa’s stake in travel company Thomas Cook.

I guess what I’m most surprised about is that the profit rose so much largely due to the added flights to a few destinations which on the surface wouldn’t seem all that profitable to me, and at the same time lowering tickets on some shorter flights. Those are incredible results though, so kudos to Lufthansa. Too bad they don’t seem to be sharing the love with United!

 Thanks to Robert for the heads up on this.

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